Rule No.2 – HAVE A DISCIPLINED PROCESS

Rule No.2 – HAVE A DISCIPLINED PROCESS
Having a disciplined process is absolutely essential for investors who want to move away from a long term strategy and become more actively involved in timing investments into and out of markets or stocks.This should ideally rely on a wide range of indicators such as valuation measures (whether markets are expensive or cheap,economic indicators,technical readings on historic price patterns for the share market ,market sentiment( the crowd is often wrong –so if everyone is bearish that is likely to be a good sign and if everyone is bullish that is likely to be a bad sign.However one problem or setback to actively managed investments can be costly and time consuming and often well beyond what most investors would do.
javascript:void(0)